SEHK:8506

Stock Analysis Report

Executive Summary

China Futex Holdings Limited, an investment holding company, engages in the research and development, manufacture, and sale of circular knitting machines in the People's Republic of China, South Korea, India, Bangladesh, Turkey, Egypt, and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Risks

  • China Futex Holdings is not covered by any analysts.

Share Price & News

How has China Futex Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.4%

SEHK:8506

-0.5%

HK Machinery

0.7%

HK Market


1 Year Return

21.4%

SEHK:8506

5.3%

HK Machinery

-5.3%

HK Market

8506 outperformed the Machinery industry which returned 5.3% over the past year.

8506 outperformed the Market in Hong Kong which returned -5.3% over the past year.


Share holder returns

8506IndustryMarket
7 Day4.4%-0.5%0.7%
30 Day0%6.1%4.9%
90 Day-11.2%-4.3%-3.7%
1 Year21.4%21.4%8.0%5.3%-1.8%-5.3%
3 Yearn/a54.0%44.8%16.4%4.6%
5 Yearn/a62.1%45.7%18.0%-1.7%

Price Volatility Vs. Market

How volatile is China Futex Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Futex Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Futex Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Futex Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Futex Holdings is good value based on earnings compared to the HK Machinery industry average.

China Futex Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for China Futex Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

China Futex Holdings is good value based on assets compared to the HK Machinery industry average.


Next Steps

Future Growth

How is China Futex Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if China Futex Holdings is high growth as no revenue estimate data is available.

China Futex Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare China Futex Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

China Futex Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

China Futex Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if China Futex Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has China Futex Holdings performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Futex Holdings has delivered over 20% year on year earnings growth in the past 5 years.

China Futex Holdings's 1-year earnings growth exceeds its 5-year average (50.8% vs 26.6%)

China Futex Holdings's earnings growth has exceeded the HK Machinery industry average in the past year (50.8% vs 7.4%).


Return on Equity

China Futex Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Futex Holdings used its assets more efficiently than the HK Machinery industry average last year based on Return on Assets.


Return on Capital Employed

China Futex Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Futex Holdings's financial position?


Financial Position Analysis

China Futex Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Futex Holdings has no long term commitments.


Debt to Equity History and Analysis

China Futex Holdings's level of debt (34.6%) compared to net worth is satisfactory (less than 40%).

Unable to establish if China Futex Holdings's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (39.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 14.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.8x debt.


Next Steps

Dividend

What is China Futex Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate China Futex Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate China Futex Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as China Futex Holdings has not reported any payouts.

Unable to verify if China Futex Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as China Futex Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of China Futex Holdings's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

China Futex Holdings has no CEO, or we have no data on them.


Management Age and Tenure

1.8yrs

Average Tenure

38yo

Average Age

The average tenure for the China Futex Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

47yo

Average Age

The average tenure for the China Futex Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Lai Chun Huen (53yo)

    Company Secretary

    • Tenure: 0.8yrs
  • Yihui Chen (33yo)

    Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥294.00k
  • Yuan Yuan (43yo)

    Chairlady

    • Tenure: 1.8yrs
    • Compensation: CN¥289.00k
  • Lina Wang (35yo)

    CFO & Finical Controller

    • Tenure: 0yrs
  • Jingyang Zhao (38yo)

    Sales Manager

    • Tenure: 0yrs

Board Members

  • Yihui Chen (33yo)

    Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥294.00k
  • Yuan Yuan (43yo)

    Chairlady

    • Tenure: 1.8yrs
    • Compensation: CN¥289.00k
  • Xudong Hu (59yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥60.00k
  • Simon Shum (47yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥84.00k
  • Zhirong Mu (47yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥60.00k

Company Information

China Futex Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Futex Holdings Limited
  • Ticker: 8506
  • Exchange: SEHK
  • Founded: 2016
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$119.000m
  • Shares outstanding: 1.00b
  • Website: https://www.kx-machine.com

Number of Employees


Location

  • China Futex Holdings Limited
  • Xiawei Village
  • Fugong Town
  • Longhai City
  • Fujian Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8506SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary Shares of HK$0.01HKHKDJan 2018

Biography

China Futex Holdings Limited, an investment holding company, engages in the research and development, manufacture, and sale of circular knitting machines in the People's Republic of China, South Korea, Ind ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 12:54
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.